The Centre wrote to the World Trade Organisation (WTO)on Monday notifying its decision to levy additional tariffs on a total 30 items from the US amounting to $240 million.

Trade relations to suffer a blow

India’s decision comes a day after Commerce Minister Suresh Prabhu returned from the US, which continues to justify its exorbitant tariff rates on the grounds of national security. It could also signal escalating trade tensions between the two nations and could set the atmosphere for further talks, scheduled in the coming months.

“India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the United States,” the Centre said in the notification to the WTO’s Council for Trade in Goods.

Although significantly less in comparison to US exports worth over $1.5 trillion, the tariffs will add up when placed alongside retaliatory tariffs on US imports by China, the European Union (EU) and the US’ North American Free Trade Agreement partners, Canada and Mexico.

The US is alienating itself from all its allies over tariffs

US president Donald Trump announced exorbitant tariffs on a list of Chinese products from the country’s prolific manufacturing sector which stand to make huge profits on American soil in the near future. Trump has further threatened to slap an additional $100 billion of Chinese products to the existing list. The list released last Friday consists a little less than the 1300 products first listed in April and is scheduled to take effect on July 6.

At the G7 summit this year which ended in disarray, Canadian Prime Minister Justin Trudeau addressed the media stating his intention to impose retaliatory tariffs on the US from 1 July, as tension over steel and aluminium duties continue to portend to a full-blown global trade war. Member nations of the European Union are also currently deliberating imposing counter-tariffs worth $4.5 billion, in a bid to respect the terms of the carefully crafted communique at Quebec last week.

However, the US has been making it increasingly difficult for the WTO to settle such disputes, by refusing to allow judges to be appointed to the body. Amidst such trade tensions, India joins the league of nations defiantly safeguarding their own trade interests against such steep import duties.